Regulatory Alerts2021-12-03
Added · Updated
Commission Delegated Regulation (EU) 2022/676 on prudential consolidation conditions
The European Commission adopted this Regulation to specify regulatory technical standards for prudential consolidation under Regulation (EU) No 575/2013. It establishes criteria for determining the consolidating entity in groups without parent-subsidiary relationships, requiring proportional consolidation for jointly controlled institutions where unanimous consent is needed, and mandating full or proportional consolidation based on step-in risk indicators. The text defines significant influence and single management, requiring competent authorities to assess risks posed by unconsolidated entities to determine if they must be included in the regulatory scope.
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